My thoughts are focusing on Japan’s GDP of 3.3 this early Monday morning. Some economists predicted a drop to 1.5 or below, with a upper limit of 3. A reading of 3.3 might spur another “yen carry trade” panic, though traders seem to have gotten more comfortable with their risks appetites with regards to the yen carry trade after the scare earlier in the year. However, I believe the potential damage caused by any unwinding of the yen carry trade would hurt more than the bond rates vs. Fed cutting rates scare we Read the rest of this entry »